Investor Behaviour (with additional practice exam inquiry)

CFA Level III Portfolio Management
#1

Hi All,

I found that there are BB&K model (classifying investors into adventurer, celebrity, etc) and Pompian behavioral model classifying investors into 4 types.

Later, there is investor classification with “Cautious investors”, “Methodical investors”, “Individualistic Investors” and “Spontaneous Investors”.

Is there any relationship between the later classification and BB&K model and Pompian behavioral model? Or it is just another classification of investor’s behavior? Thanks.

#2

it is just another damn way of classifying investors again my dear. they are all simmilar and quite confusing. But i think the last category is from the CFAI itself. its their own version so why not getting familiar with it also. even more cos i hink they always like to test us on what comes from them often times. try this nemonics:

C- Celebrity

A- Adventurer BB&K (Five way) model

G- Guardian

I- Individualist

S- Straight arrow

M- Methodical

I- Individualist CFAI Method

S- Spontaneous

C- Cautious

#3

Thanks Harry!

Sorry that there is some problem for me to create a new post and hence post another inquiry here. Wish someone could clarify with me -

I got some confusion about Pracvtice Exam qestion, Volume 1, Exam 3 Afternoon Exam Q37. Why do we need to times the (1+3%)^(5/12) to 3 billion to conclude the synetic cash position since the 3 billion is not currently in T-bill position? Thanks million!

#4

Would someone please help with #3? Thanks!

#5

it is creating a synthetic equity position - so you would be creating it at that time in the future when you have the funds. by that time - 5 months hence - the money has grown at the risk free rate.